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Germany's top court rejects challenge to ECB's bond buying plan

German judges rejected challenges against one of the European Central Bank's most powerful tools just two days before a potential Brexit vote could unleash economic turmoil across the euro area.

PHOTO: AFP

[BERLIN]German judges rejected challenges against one of the European Central Bank's most powerful tools just two days before a potential Brexit vote could unleash economic turmoil across the euro area.

Germany's highest court dismissed five suits seeking to stop the country from participating in a controversial bond- buying plan that underpinned European Central Bank President Mario Draghi's 2012 vow to do "whatever it takes" to save the euro.

While they voiced concerns, the German judges said they were bound by last year's ruling on the Outright Monetary Transactions program by the European Court of Justice, which said it includes sufficient safeguards to prevent the bond purchases from being disproportionate, which would violate EU rules governing the ECB.